And the Print Media Die On

Last week, you might remember that ELLE Accessories kind of folded, along with a few more print magazines, and CosmoGIRL! died just before that.
Now, Time Inc's announced that they're cutting 600 jobs from their company, instituting a total restructuring of the management of their titles (which includes In Style, easily the most widely-read fashion women's magazine on the market) and will now be regularly lending writers between magazines, presumably to save on pay. And Time's the world's largest magazine publisher with 130 books on its roster.
For now, they're saying that none of their titles are folding. Whether anyone should really believe that remains to be seen. But here's a thought:
Time is widely regarded as one of the best companies to work for. Anyone who's ever worked at In Style will go on and on about the hours, the pay, the benefits, and especially the general culture of super nice people who are all sans 'tude.
But what happens when you strip staffers of their sense of security and inevitably make everyone more competitive for their jobs?